The Kemira Oyj (HEL:KEMIRA) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Kemira Oyj (HEL:KEMIRA) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of €693m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.35, missing estimates by 3.4%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kemira Oyj after the latest results.

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Taking into account the latest results, Kemira Oyj's six analysts currently expect revenues in 2025 to be €2.85b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 2.3% to €1.49. In the lead-up to this report, the analysts had been modelling revenues of €2.89b and earnings per share (EPS) of €1.60 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Kemira Oyj

It might be a surprise to learn that the consensus price target was broadly unchanged at €23.40, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kemira Oyj analyst has a price target of €24.50 per share, while the most pessimistic values it at €20.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kemira Oyj is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2025. This indicates a significant reduction from annual growth of 5.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Kemira Oyj is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kemira Oyj's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Kemira Oyj going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Kemira Oyj's balance sheet, and whether we think Kemira Oyj is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.